What factors do you think are critical in starting new co-operatives? What are some external and internal interventions that need to be considered in the formative period? What conditions improve the chances for success in starting a co-op? These are just a few of the questions we explored with a group of co-ops developers at a gathering in Toronto in May 2006.

As noted in the last issue of Anthill, the Best Practices project began in December of 2005 as an endeavor to document insights and lessons learned from the experience of co-op developers across the country. In the first stage of the project, we met with 11 developers for two days in Toronto to hear their views on effective practices for starting new co-ops.

From our initial round of discussions it was clear that we had opened up a very big topic – the parameters of which could only be sketched in two days. Below is a summary of our discussion on the major themes around best practices in starting new co-ops. To illustrate the synthesis of our discussion, it may be helpful to think of concentric rings that are formed around the seedling co-op and how everything is interconnected.

The inner ring – or core – holds the question of “who are the real developers?” Many of the “developers” around our table pointed out that the real developers are the people in the communities who actually are the members of the new co-op. They might be called the “community level developers” or the term “co-op entrepreneur” was used in the case of business related co-ops. These are the people who really own the project at the end of the day and must carry it along to full fruition. Best Practices here brought out questions of: what tools, resources, support, and information does this group need?

In the second ring, we have those people whom we usually call “co-op developers,” another term that was used was “co-op consultants.” Best Practices questions here touch on awareness of the many roles the co-op developer plays, such as: consultant, advocate, and counselor. Questions also arise around the responsibilities and ethical concerns that go with this position. When we consider the relationship between the above two parties (the community level developers and the co-op consultants), this opened up the whole discussion of practices related to the “stages” in developing co-ops – from nurturing the initial vision, developing a plan, forming a board, defining roles and responsibilities, becoming incorporated, organizing the financial matters of the co-op, right through to the implementation phase.

Key issues and challenges that arise in this period were discussed. Some of the key issues named were: power relationships and leadership dynamics, building management capacity and business coaching, developing partnerships, working with limited resources, working with the various tensions in the process – for example the group might not wish to spend much time working on a particular step but the developer feels this is crucial. The developers also identified a number of challenges they face personally and challenges new co-ops encounter. For a new co-ops it is often difficult to raise the capital that is needed to get underway, this may be especially true if the majority of members are low income. Government regulations and policies can also present hurdles for new co-ops – such as health co-ops obtaining a billing number, or a worker’s co-op being able to apply for government funding. The next two “rings” brings attention to the broader sphere of influences that affects the new co-op – here we are considering the social “context” surrounding the development of co-operatives.

A first outer-layer considers the role of the co-operative movement in supporting new co-ops. How do established co-ops contribute to supporting their younger siblings? What role might credit unions take to more actively assist with financial matters? How do the movement and co-op organizations support and recognize the work of co-op developers? The participants from Quebec shared many insights into the development of a fairly comprehensive, co-operative infrastructure within that province. Working within this network, the role of developers seems quite different from other regions of the country.

Finally, examination of a second, outer-layer raises questions around the role of government; the changing economy; the nature of the competitive, capitalist state; globalization; environmental changes; and other macro level social forces. Are government polices and funding programs co-op friendly? What is the state of provincial co-op legislation? How is free-trade affecting this sector of society or the economy? Are money and other resources being put into developing alternatives and new niche markets in various areas? What kinds of partnerships are necessary and helpful for new co-ops?

In developing a new co-op, one must be attentive to the role and impact of each of these layers. Some of these dynamics are within the realm of influence of the developer and the co-op members, others are not, yet the awareness of the broader canvass affects decisions the developer and the co-op must make along the way. The question of what “best practices” means to people was another topic of discussion. Some participants were not comfortable with the term, yet others felt it is an important and helpful concept. Other terms were suggested, such as: root practices, successful practices, effective practices, or useful practices. No consensus was reached on one term that felt right for everyone but we are agreed to carry forward with the basic intent of the project: to explore and identify the conditions and document the practices that contribute to the success of new co-ops and learn from the years of experience of co-op developers across the country. Watch for more updates in the next issue of Anthill as we now begin to enter the second stage of the project.

Joy Emmanuel, BCICS Project Coordinator